Investing in real estate is a personal choice and it is one that is messy and stressful. You have tenants who want to negotiate, tenants that will try to break the lease, you will have tons of repairs which cost money, and lets not even get started on how much stress is involved!
With all that being said, is investing in real estate really worth it? Would you voluntarily own many rentals on purpose? Real estate is a lot of work and is stressful. Would you continue or quit?
Moving season is almost upon us and these are the questions that are swirling around the internet. Every one has the same question: Should I invest in real estate? My answer? Yes! Over time as you become more comfortable with the situation, investing in real estate becomes more passive, less stressful, and you become comfortable with the situation.
I know for some people it’s not that easy. But here is the million dollar question: Is anything in life easy?
Here’s a good example from my personal life: My husband and I have an adorable 8 pound cat that we consider our current child. I also have baby fever, but taking that leap for us is scary.
Seems as though I have a list of excuses I can come up with: I am not a morning person, I have a great job, we have money flexibility, and no one wakes me up at the middle of the night routinely (the kitty cat does once a year so that doesn’t count).
So many things could go wrong. It is scary and I am clueless and I know I will figure it out, but is that any reason for me to never have a child? Of course not!
Here’s another example: My husband is a military man and one whom I am PROUD to stand behind. This life is not easy and we have lost friends even at this relatively “new” point in my career.
When my husband was on deployment, the time differences would mean that his missions would be done while I slept. Any morning after a mission, if I didn’t have an email waiting for me I searched the internet for bad news. I did it just to make sure my husband was still breathing.
Life is messy. It has risks and is stressful. Does that mean you should not pursue a career you love, have children or do anything else? Of course not! Because some of the best things in life come from the hardest times.
The key is to be smart! Being a landlord is doable. Buying a house is possible. You will experience a learning curve, but you WILL survive.
How to be Successful When Investing in Real Estate:
- Treat it Like a Business. I treat investing like a business. I expect to earn a profit, I treat others like I want to be treated, and I will make money. I am not ashamed.
- Have a Written Contract. Put everything in writing and be realistic of your expectations.
- Buy the Right House for You Goals. If you want to own a rental, buy a home that will make a good rental. Remember: not every house is a good rental!
- Have An Exit Plan. Life is fluid. Make sure you know what you are going to do with your house when the unexpected happens. Make sure you have a plan beforehand so you can be prepared.
- Know Why You are Doing This. Real estate is our retirement basket. So this is worth it to us because of the long term potential and it will fuel our dreams. Why do you do this when it is an awful day and all you want to do is crawl into bed or have a cup of wine? Have a good reason to go on another day.
Why did you get started in Real Estate? Why are you scared to get started?2
Kay Lynn Johnson says
Cab you tell me a little more about what makes (or does not ) a house a good rental house?
Elizabeth Bennett Colegrove says
You might enjoy this post the 7 “Dating” Building Blocks of a Great Investment Relationship. I talk about what I look for that makes a great investment.